GLOBAL MARKETS WERE MIXED TO HIGHER AS MORE VACCINES ARE SHOWING HIGH EFFICIENCIES. THE LOCKDOWN IN EUROPE IS SHOWING PROMISE, BUT IN THE US MORE STATES ARE SHUTTING DOWN. 10 Year Treasury notes were UP 2.8 bps. S&P +0.56%, Dow +1.12%, NASDAQ +0.22%.
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Market Summaries
North American Bond Research – November 23, 2020
Posted on November 23, 2020|
HIGH YIELD BOND RESEARCH
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November 23, 2020
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Bond Markets
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 60 MILLION+ CASES AND 1.4 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 12.72 MILLION+ CASES AND 264000+ DEATHS. Among high-grade bonds showing topmost price gains at appreciable volumes traded, Hertz Corp (The) (USD) 7% 1/15/2028 made analysts’ ‘Conviction Buy’ list. (See the chart below for Hertz Corp bonds) Pierre Robert
| Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Pacific Gas & Electric Co. 4.95% 7/1/2050 Constellation Brands Inc. 4.25% 5/1/2023 Vale Overseas LTD 6.25% 8/10/2026 Lennar Corp. 4.75% 11/15/2022 St Marys Cement Inc. 5.75% 1/28/2027 Reg S Lennar Corp. 4.75% 5/30/2025 Service Properties Trust 5.5% 12/15/2027 Micron Technology Inc. 4.185% 2/15/2027 Ford Motor Co. 8.5% 4/21/2023 Bank of Nova Scotia FLT% 9/15/2023 |
| Industry Returns Tracker | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | Forward Calendar |
|---|---|
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(None Current 11/23/2020)
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1. Carnival: $1000MM senior unsecured notes (B2/B)
2. American Bath: $335MM senior unsecured notes (Caa2/CCC+) 3. Sinclair: $550MM senior secured notes 4. Ancestry: $450MM senior secured notes (B1/B+) 5. Ancestry: $550MM senior unsecured notes (Caa1/CCC+) 6. Presidio Holdings: $125MM secured notes (B1/B) 7. Empire Resorts Inc.: $475MM senior secured notes (B+/B+) 8. NRG Energy Inc.: $2361MM secured and unsecured notes 9. LABL Inter: $500MM senior PIK toggle (/B-) 10. Franchise Group: $650MM senior secured notes (B1/B+) |
Additional Commentary
NEW ISSUANCE WATCH: No New Issues.
| Top Widening Loans | Top Narrowing Loans |
| Alorica (USD) TL L+375 06/30/2022 Hurtigruten Group AS (EUR) TLC E+800 06/16/2023 Casper Bidco (EUR) TL E+850 07/30/2027 NPC International Inc. (USD) TL L+350 04/20/2024 BioClinica Inc. (USD) TL L+825 10/06/2024 |
Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Greenway Health LLC (USD) TL L+375 02/16/2024 Buzz Merger Sub LTD (USD) TLB L+275 01/29/2027 Aptean Inc. (USD) TL L+850 04/24/2027 Monotype Imaging Inc. (USD) TL L+550 10/11/2026 |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Symantec Corp., Broadcom LTD, Toll Brothers Inc., Cole-Parmer Instrument Co.
OVERALL CREDIT MARKET:
Long-term bond yields are expected to hit a cyclical peak in 2019 given tight fiscal policy and lagging global economies. Europe remains checked by stubbornly low inflationary forces. Positive effects remained in force:
- TED spread held below 14 bps (basis points), as of 11/23/2020
- Net negative capital flows into high-yield ETFs & mutual funds
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INVESTMENT GRADE BOND RESEARCH
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November 23, 2020
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Bond Markets
EUROPEAN MARKETS WERE HIGHER AS PROGRESS IS BEING MADE TO TAME THE VIRUS. US MARKETS FELL AS TREASURY SECRETARY MNUCHIN UNEXPECTEDLY DEMANDED UNUSED PPP MONEY BACK FROM THE FED. 10 Year Treasury notes were down 2.5 bps. S&P -0.68%, Dow -0.75%, NASDAQ -0.42%.
CORONA VIRUS UPDATE: GLOBAL CORONAVIRUS TO DATE HAS HAD 58 MILLION+ CASES AND 1.38 MILLION DEATHS. IN THE UNITED STATES THE CORONAVIRUS COUNT IS 12.3 MILLION+ CASES AND 260000+ DEATHS. Among high-grade bonds showing topmost price gains at appreciable volumes traded, Halliburton Co. (USD) 5% 11/15/2045 made analysts’ ‘Conviction Buy’ list. (See the chart below for Halliburton Co. bonds) Pierre Robert
| Key Gainers and Losers | Volume Leaders | ||||||||||||||||||||||||||||||
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JPMorgan Chase & Co. VAR% 11/19/2026 Verizon Communications Inc. 2.65% 11/20/2040 Anheuser-Busch Inbev Worldwide Inc. 4.5% 6/1/2050 Bristol-Myers Squibb Co. 0.75% 11/13/2025 Micron Technology Inc. 2.497% 4/24/2023 Boeing Co. 5.805% 5/1/2050 Verizon Communications Inc. 3% 11/20/2060 Citigroup Inc. 2.572% 6/3/2031 Suzano Austria GmbH 7% 3/16/2047 Reg S JP Morgan Chase & Co. 3.25% 9/23/2022 |
| Industry Returns Tracker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| New Issues | New Issues [Continued] |
|---|---|
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(None Current 11/23/2020)
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Additional Commentary
NEW ISSUANCE WATCH: AES Corp. sold $1800MM in notes.
| Top Widening Loans | Top Narrowing Loans |
| Alorica (USD) TL L+375 06/30/2022 Hurtigruten Group AS (EUR) TLC E+800 06/16/2023 Casper Bidco (EUR) TL E+850 07/30/2027 NPC International Inc. (USD) TL L+350 04/20/2024 BioClinica Inc. (USD) TL L+825 10/06/2024 |
Quorum Health Corp. (USD) TL EXIT L+825 04/29/2025 Greenway Health LLC (USD) TL L+375 02/16/2024 Buzz Merger Sub LTD (USD) TLB L+275 01/29/2027 Aptean Inc. (USD) TL L+850 04/24/2027 Monotype Imaging Inc. (USD) TL L+550 10/11/2026 |
Loans and Credit Market Overview
SYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Symantec Corp., Broadcom LTD, Toll Brothers Inc., Cole-Parmer Instrument Co.
OVERALL CREDIT MARKET:
Long-term bond yields are expected to hit a cyclical peak in 2019 given tight fiscal policy and lagging global economies. Europe remains checked by stubbornly low inflationary forces. Positive effects remained in force:
- TED spread held below 14 bps (basis points), as of 11/23/2020
- Net positive capital flows into high-yield ETFs & mutual funds
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